Television digest with electronics reports (Jan-Dec 1953)

(Vol. 9:3); $3,150,000 sale of KFMB-TV, San Diego, to Alvarez-Wrather (Vol. 9:5), which FCC approved this week; the aforesaid $6,000,000 sale of WBKB, Chicago, to CBS as part of ABC-UPT merger, involving also transfers of 5 ABC stations to new holding company (Vol. 9:7); Philco's $8,500,000 sale of WPTZ to Westinghouse (Vol. 9:8) — and, of course, the shutdown and recent "distress sale" of KONA, Honolulu, a postfreeze outlet, to the Honolulu Advertiser-McCaw-Keating group (Vol. 9:11). For the good of TV, it's a happy circumstance that stations sold have gone and are going into hands of people who not only look to profits but have made the business of TV-radio broadcasting their professions, for most part, and who have the requisite experience and know-how to render real service. Study of all the deals to date shows purchasers are generally what trade regards as "good operators". TV PROFITS JUMP 31% IN '52, VIE WITH AM's: Tremendous surge in telecasting revenues and earnings last year, as in each preceding year, is attested by FCC's preliminary "audit" released this week as Mimeo 88195. Total telecasting revenues went up 43% to $356,500,000 from $235,700,000 in 1951, while net income (before Federal income taxes) rose 31% to $54,500,000 from $41,600,000 in 1951. It was by all odds TV's best year. (For complete tables of official 1946-51 TV--radio revenue-&-income figures, see p. 13, TV Factbook No. 16.) So substantial was TV's increase that FCC's 1952 AM-FM figures, when issued in month or two, may disclose that 1952 was historical turning point when TV's net income actually surpassed radio's. For radio's 1951 net income was $57,500,000, a drop of $10,700,000 from 1950, and slight further decline would bring it below TV. It's clear, in any event, that TV's 4 networks and mere 108 stations (new outlets were a negligible factor last year) ran neck-&-neck with the combined profit of the nation's 2400 AM stations, 4 national networks, numerous regional nets. It was still possible to lose money in TV, nevertheless, for 14 stations reported losses, same number as in 1951 — though losses dwindled. And costs of running TV networks have become so fierce — rising 56% while revenues rose 50% — that networks' net income actually dropped to $9,000,000 from 1951 ' s $11, 000, 000. Fact is networks made more out of radio than TV, $11,200,000, and on about half the gross. The 14 post-freeze stations which began last year (first in mid-July, all rest between Sept. 18 & Dec. 31) surprisingly lost only $100,000 on aggregate revenues of $800,000. They're lumped together in FCC report, though it's believed a few were in black from start. Only 3 actually operated more than 2 months, so figures aren't too significant. (For list of the 14, see Vol. 8:52.) Preliminary figures will be revised somewhat when FCC issues final report later in year, but changes generally are slight. It should be noted that when FCC talks of "total revenues" it means not only time sales but sales of talent & program material — latter two factors very important in TV, much more so than in radio. You can get Mimeo 88195 by writing to Commission, or we'll get copy for you. Here's breakdown of the salient statistics: (1) 95 pre-freeze stations, or all save the 15 owned by networks, took in $143,700,000, netted $45,600,000. This compares with 1951 gross of $107,300,000, net of $30,600,000. They netted $800,000 in 1950, lost $13,200,000 in 1949. (2) Networks plus their 15 stations accounted for $191,900,000 revenues and net of $9,000,000. In 1951, their revenues were $128,400,000, net $11,000,000. They lost $10,000,000 in 1950 and $12,100,000 in 1949. Network AM figures, also released this week, disclosed 1952 revenues of $97,100,000, net of $11,200,000 as against 1951 revenues of $99,000,000, net of $9,500,000. No AM station figures were given. (3) Profits were reported by 94 stations, with median of $455,000 vs. $330,000 in 1951. In 1950, the 53 profit earners' median was $129,200. Twelve stations disclosed profits of $1,500,000 or more each; four, $1 , 000 , 000-$l, 500, 000 ; seventeen, $600 , 000-$ 1 , 000 , 000 ; nineteen, $400 , 000-$600 , 000 ; twenty-two , $200 , 000-$400 , 000 ; sixteen, $100, 000-$200, 000 ; four, under $100,000.